Intel isn't making enough processor chips to meet demand and that will be a problem for PC sales this holiday quarter, according to J.P. Morgan.

The firm estimates the Intel processor and chipset shortage will hurt fourth-quarter PC shipments by 5 to 7 percent.

"Our conversations with PC vendors indicate that the shortage, which started in small magnitude in 3Q, has been progressively worsening and is likely to have the maximum impact in 4Q18," the firm's Asia-Pacific technology analyst, Gokul Hariharan, said in a note to clients Friday. "We expect this to affect both notebook and desktop PCs and likely to have a higher impact on commercial and high-end consumer PCs, where using AMD or older Intel family of CPUs as substitutes are more difficult."
____________________Source: cnbc